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How Much Mortgage Can I Afford?
Learn about home ownership and determine how much you may be able to afford with our online mortgage pre-approval.
What is a credit rating?
Your credit rating is a ranking that indicates your financial health at a specific point in time. It compares the risk you pose for lenders to that of other Canadians.
Your overall credit rating is an important factor in determining the type and amount of credit you may be eligible to receive at any given time. That's why it's so important to establish and maintain the highest rating possible.
Credit agencies collect credit information from the companies that provide the credit to you. A strong credit record enhances your ability to get credit in the future. Records containing negative reports, such as overdue payments or non-payments, could make it more difficult for you to borrow or get credit in the future.
How to find your credit rating
It's good to be prepared and know your credit rating, especially before you apply for a TD Mortgage or TD Home Equity FlexLine. To find out how to obtain a copy of your credit bureau report, you may contact the credit bureau agencies directly: Equifax or TransUnion
How to improve your credit rating
Your credit rating can change over time, and it's a number you can improve with timely payment practices. If your credit rating is low, try to improve your credit rating before you apply. Here's how to manage your credit rating:
- Having a balance too close to your limit can decrease your credit score. Keeping your overall usage low by paying down your balance even if it’s only the minimum amount.
- Carrying high credit card balances can decrease your credit score. Keeping your balances low by paying down or consolidating your credit cards will improve your credit score.
- Making at least the minimum payment on time is important to maintain or improve your credit score. It's a good idea to set up automatic payments to make sure you are never late.
- Maintain a mix of credit, such as a credit cards, an auto loan, and a line of credit. Responsible use of credit cards and loans will produce a better credit rating than no history at all.
New to Canada?
As you settle into your new life in Canada, it’s important to pick a bank that can help you build a solid financial foundation. One of the biggest financial decisions you will make when putting roots down in your new country is the purchase of a first home
Even if you have no credit history1, you may qualify for a TD Mortgage or TD Home Equity FlexLine if:
- You are a permanent resident or have applied to become a permanent resident in Canada
- And you have been in Canada for 5 years or less